Tariff Challenges: 57% of Companies Struggle with Long-Term Planning

The evolving landscape of tariffs continues to pose significant challenges for businesses, particularly concerning long-term planning and rising costs. A recent survey by GlobalData reveals that more than half of the companies surveyed are struggling with these issues in light of current tariff policies. Key Findings of the Tariff Sentiment Poll In the latest GlobalData Tariffs Sentiment Poll, conducted from April 10 to May 31, an alarming 57% of participants indicated that uncertainty in long-term planning has become a critical hurdle for their operations. This sense of unpredictability has been largely attributed to the U.S. administration's announcement on April 2 regarding reciprocal tariffs, which has since seen multiple postponements and alterations. According to GlobalData's report, “President Trump’s sweeping tariffs now face legal challenges in domestic courts regarding their legitimacy, and uncertainty on this specific issue will persist until it is likely escalated to the U.S. Supreme Court for a decision.” This ongoing instability has potential ramifications for economic growth, as businesses may be compelled to delay or reduce investments until the tariff situation becomes clearer. The Impact of Increased Costs About 50% of respondents also reported that higher input costs are a major challenge, with many businesses currently grappling with increased expenses associated with tariffs on exports to the U.S. GlobalData notes that "These costs will only rise if currently postponed U.S. reciprocal tariffs are implemented." Additional Challenges Identified Other issues that companies are facing include a decrease in international market demand, reported by 30% of participants, and a rise in regulatory complexity, acknowledged by 29%. Notably, 25% of those surveyed indicated that they do not perceive any significant challenges arising from the current tariff environment. Shifts in Tariff Anxiety The survey revealed a slight decrease in tariff-related anxiety among businesses, with concerns dropping from 68% to 65%. However, there was a notable increase in the proportion of respondents who anticipate that tariffs will have a detrimental effect on their business outlook, rising from 61% to 64%. For further insights on how to navigate the complex tariff environment, consider requesting a free demo of GlobalData's Strategic Intelligence. This report highlights the significant issues companies are grappling with in the face of an unstable tariff landscape, underlining the need for strategic adaptability in a challenging global trade environment.